The Baltic Exchange's dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, extended losses for the thirteenth straight session on Thursday, pressured by a dip in rates across capesize and supramax segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, dropped 11 points to 715 points, hitting its lowest in 23 months.
The capesize index slipped 35 points to 841 points, dropping to its lowest level since February 2023. Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, lost $290 to $6,977.
The panamax index gained 16 points to 767 points. Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain, increased by $137 to $6,899.
Among smaller vessels, the supramax index was down 7 points at 605 points, its lowest since June 2020.
We expect lower freight rates this year and the next, compared to 2024, due to a weaker supply/demand balance, with panamax and supramax vessels likely to see a drop in demand if ships return to the Red Sea, while China's weak domestic consumption continues to pose a threat, said analysts at the Baltic and International Maritime Council (BIMCO) in a note.
Red Sea shipping has been risky despite the Gaza ceasefire and an announcement by Yemen's Houthis to limit their attacks.